NYC construction spending to fall, public role shrinks-report

May 1 New York City's construction sector likely
will shrink to a total of $25.1 billion in 2013, from an
estimated $28.8 billion this year, because public investments in
schools, mass transit, roads and bridges and the like are
expected to drop, according to a report issued on Tuesday.

The projection for 2012 compares with an overall total of
$27.4 billion in 2011, which was down 3.5 percent from 2010.

Though Mayor Michael Bloomberg's city administration and the
Metropolitan Transportation Authority continued to build during
the Great Recession, that funding now looks strained.

"Agencies are bracing for a severe downsizing of their
budgets," said Richard Anderson, the president of the New York
Building Congress, in a statement.

Any retreat in construction spending by the government
likely will be long-term, he warned. "Like an ocean liner, it is
virtually impossible to quickly reverse course on massive,
multiyear capital programs," Anderson said.

Last year, the government sector made up 53 percent of all
construction spending, totaling $14.4 billion. That was down 10
percent from the 2010 total for this sector of $16.1 billion.

In contrast, residential construction is expected to show "a
dramatic resurgence" in the next few years.

This sector fell to $2.3 billion in 2010, rose to $2.9
billion in 2011, and is expected to hit $4.8 billion in 2012.
The projection for 2013 is $6.8 billion; if achieved, this would
top the previous peak of $6.4 billion in 2007.

The building of offices, hotels, and sports and
entertainment venues is expected to rise to $11.2 billion this
year, but then drop to $8.6 billion in 2013.

This forecast drop could change if the economy improves, and
projects that have stalled are able to find financing, the
report said.

Spending on this sector totaled $10.1 billion in 2011,
little changed from the year before, when $10 billion was spent.

Employment in the construction industry should rise to
120,800 in 2012, but fall to 105,400 in 2013, the report said.
Last year, this sector averaged 111,500 jobs, which was less
than one percent below the 2010 figure.

* Canadian dollar at C$1.3175, or 75.90 U.S. cents
* Loonie touches its strongest since Oct. 20 at C$1.3161
* Bond prices lower across a steeper yield curve
TORONTO, Dec 9 The Canadian dollar strengthened
to a fresh seven-week high against its U.S. counterpart on
Friday, with the risk-sensitive commodity-linked currency
outpacing broader gains for the greenback as oil and stocks
climbed.
The loonie is on track to rise for the second straight week
despite the Bank of

Reuters is the news and media division of Thomson Reuters. Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Learn more about Thomson Reuters products: